Cavuto: I want to ask you, how much are you making on that?
Because it’s $0.99, but typically, typically Apple takes a
Murdoch: That’s correct.
Cavuto: Now, is it taking a third here?
Murdoch: At least the first year, yes. We’ll be getting $0.70.
Cavuto: All right. But it goes — so you say at least the first
year. It goes down after that?
Murdoch: We — no. Up, we hope.
Cavuto: But down for Apple.
Murdoch: That’s subject to negotiation.
That surprises me. I really thought the “other shoe” that’s about to drop regarding subscription pricing (and in-app purchasing for apps like Kindle) is that Apple would be taking a smaller cut, more in line with being a payment processor than a store owner. The bottom line for why The Daily is major news is not that it’s particularly good (at least yet), but simply that News Corp. is willing to place a decent-sized bet on a publication that is only available on the iPad.